Organisational learning, competencies, and firm performance: empirical observations

Abstract

Empirical research has already postulated the link between learning routines and the creation of competencies, but it is less clear how competencies influence organisational performance. This paper is an empirical investigation determining the relationship between the creation of competencies and the quality of learning. The purpose of the paper is to not only build on prior research that has validated the usefulness of linking levels of learning with the evidence of competencies, but also to illustrate how the creation of competencies is a socially constructed phenomenon. Thus, the paper has a strong theoretical disposition examining the existing literature as well as building on it. Socially constructed routines of themselves have little inimitable advantage to firms unless the routines are underpinned and harnessed by unique learning systems. The paper explores these concepts by showing how the creation of competencies depend on, and are predisposed to, the quality of learning interaction, the routines that are patterned from these, and the capacity of the organisation to turn the new socially constructed routines into superior performance. The paper is expected to make a major contribution to the strategic management literature by showing what types of competencies are more likely to lead to superior firm performance, and how competencies are linked to learning.

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